Buy-to-Let in Hove for First-Time Landlords – Interest-Only vs Repayment and Tax Basics 2025

Hove and neighbouring areas continue to draw renters, from young professionals near the seafront to families in Hangleton. If you are buying your first investment property, structure matters.

Interest-only vs repayment

• Interest-only – lower monthly payments, easier cash flow and often preferred by investors. Capital must be repaid later through sale, savings or remortgage
• Repayment – higher monthly payments but you steadily build equity and reduce interest over time

Deposits, yields and stress testing

• Buy-to-let loans typically need a 25 percent deposit
• Lenders stress test rent against the mortgage at a conservative rate
• Target a net yield that covers costs – mortgage, insurance, maintenance, service charge and voids

Picking the right property in Hove

• Near Hove Station – strong demand for 1 and 2 bed flats
• Aldrington and West Hove – family lets with driveways and gardens
• Shoreham-by-Sea – value and commuter appeal

Simple tax basics to consider

• Mortgage interest rules differ from residential mortgages
• Budget for self-assessment and keep meticulous records
• Consider whether a limited company structure or personal ownership suits your plan – take advice before you buy

Want a worked example for a property you have found – send the headline numbers via our contact page and we will run the maths.